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RangeBounce

Concept

RangeBounce is a structure-based mean-reversion entry logic. It looks for a sufficiently wide support/resistance range and then tries to buy the lower edge or sell the upper edge.

Idea

A long setup appears when price is close enough to the nearest support level. A short setup appears when price is close enough to the nearest resistance level.

The model can additionally require:

  • a minimum range width so tiny noisy bands are ignored
  • M5 and M15 to both classify the market as Ranging
  • candle close confirmation in the expected direction

Genetic Algorithm Parameters

  • Tolerance to support/resistance in pips
  • Minimum range width in pips
  • Whether M5 and M15 must both be ranging
  • Whether candle close confirmation is required

Best suited for

  • sideways or balanced market phases
  • symbols where support and resistance levels are respected repeatedly
  • traders who want a cleaner distinction between range trading and breakout trading